Strong earnings reports from Alphabet, Advanced Micro Devices and other tech companies cheered the stock market Wednesday, which initially expanded its rebound.
Stock market indexes pared some gains midmorning. The Nasdaq, which is more heavily weighted in techs, climbed 0.3%. The S&P 500 also added 0.3%.
The Dow Jones Industrial Average fell 0.2% as the 30 components traded mixed. But the Russell 2000 reversed lower to a loss of 1%.
Volume rose on the Nasdaq and fell on the NYSE compared with the same time on Tuesday.
The U.S. is sending 3,000 troops to bolster European allies, the first deployment in a tense stand-off between Russia and Ukraine. While the two sides are still working on a diplomatic solution, the threat of a Russian invasion of Ukraine presents a risk for financial markets.
Stock Market Cheers Earnings Reports
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35431.44 | +26.20 | +0.07 |
| S&P 500 | (0S&P5) | 4573.14 | +26.60 | +0.59 |
| Nasdaq | (0NDQC ) | 14461.75 | +115.75 | +0.81 |
| Russell 2000 | 201.50 | -1.86 | -0.91 | |
| IBD 50 | 38.57 | +0.15 | +0.39 | |
Last Update: 10:10 AM ET 2/2/2022 |
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But Wednesday, Wall Street was focused on some big earnings reports.
Alphabet, one of the largest stocks in the Nasdaq and S&P 500, gave both indexes a boost. Shares of the Google parent jumped to a new high after the company late Tuesday beat earnings and revenue expectations.
Alphabet also announced a 20-for-1 stock split, which may make it easier for the stock to join the Dow industrials, Barron's reported. Alphabet stock topped the 3,019.43 buy point of a lopsided base but dipped below the entry in early trading. Shares rose 8% even after trimming gains.
Advanced Micro Devices also gave the tech sector a boost after a strong earnings report. The chipmaker sailed past analysts' estimates for the fourth quarter. AMD also gave bullish guidance for the current quarter and full year. AMD shares gapped up to a gain of 8% in big volume, and appear to be forming a new base.
But problems only grew for PayPal. The electronic payments company disappointed with its earnings and total payment volume. PayPal's 2022 profit guidance missed views also. The stock, which has been depressed for months, plummeted 25%, erasing nearly all gains from a May 2020 breakout.
D.R. Horton posted earnings this morning that rose 48% on a sales increase of 19%, both above expectations. It was the first look at the homebuilding industry's December-ended quarter.
The company raised its 2022 revenue forecast to $34.5 billion-$35.5 billion. And Chairman Donald R. Horton called the housing market "robust." D.R. Horton stock, however, reversed lower.
Stock Market Waits For Meta, Qualcomm Earnings
More major earnings reports come out after today's close, the main one being Meta Platforms, the parent of Facebook. Analysts expect earnings of $3.85 a share on revenue of $33.36 billion, according to FactSet. After hitting a 10-month low in January, the stock is now rebounding, but there's no entry so far.
Qualcomm also issues its quarterly report later today. The consensus earnings estimate is $3.01 per share with sales of $10.44 billion. Qualcomm shares gapped above the 50-day moving average as chip stocks rallied on AMD's results. IShares Semiconductor ETF rose 2%, extending a rebound.
Innovator IBD 50 ETF was up 0.2%, on track for a fourth straight gain.
Blackstone, discussed in Tuesday's IBD 50 Stocks To Watch, rose above the 136.56 buy point of a double-bottom base in heavy volume.
Lumber products company Boise Cascade gapped up to a new high. The stock may be rallying in sympathy with D.R. Horton's bullish views on the housing market. Shares are extended.
